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Last Updated: November 30, 2022

Odisha Renewable Energy Policy

Climate change is the most pressing issue of present times. Mitigating the risks of climate
change requires urgent action at all levels and there is a need for concerted efforts to
support the global action against climate change. Decarbonisation of the energy sector will
be a key component of our actions for climate protection.
This Policy envisions to establish a robust framework that can enable Odisha to undertake
an inclusive journey towards energy transition through higher adoption of renewable
energy (RE) in our power system. Apart from power sector, it is also required to have
parallel and concerted measures around electric mobility, green buildings, low carbon or
carbon-free agricultural practices, industrial & mining activities .
Odisha is endowed with vast and largely untapped renewable energy potential. Although
the techno-commercial viability of the entire potential capacity needs to be ascertained, a
large part of the potential can be brought to life with proper technology, Policy and
Regulatory framework and market mechanism. With RE becoming commercially viable
and growing trend towards adoption of low carbon and sustainable ways of development,
citizens and businesses are now focused on RE to meet their energy needs.
As per the Nationally Determined Contribution (NDC) submitted to United Nations
Framework Convention on Climate Change (UNFCCC), India stands committed to reduce
Emissions Intensity of its GDP by 45 percent by 2030, from 2005 level and generate about
50 percent of electricity from non-fossil sources by 2030.
Odisha is among the leading industrialised states in the country and a continuous increase
in energy demand from all sectors is expected in the years to come. There is clear
demand for RE from the DISCOMs and the industries due to RPO and Net Zero
commitments. It is desirable that these obligated entities meet most of their RE
requirement from projects developed inside the State. Hence, the Government
has formulated a new RE Policy to facilitate development of commercially viable projects
across multiple RE technologies within the State both for captive and open access
The Government through this Policy aims to encourage State sector power utilities to foray
into RE development in multiple technologies, apart from enabling participation from
private sector and Central PSUs.
As Industries and Governments embark upon the journey of energy transition, it is
essential to ensure that the transition is ‘just’. Proper training will be required for the youth
and working population to take up jobs in RE sector. The Policy aims to create skilled
and semi-skilled manpower for the RE sector.
With this primary objective to create an enabling environment for harnessing maximum
potential of Renewable Energy in the State through Government, private sector and
individual efforts, the Odisha Renewable Energy Policy 2022 has been developed.
1. Vision
To harness the renewable energy (RE) potential of Odisha and accelerate investment in
the RE sector for ensuring energy security, promoting socio-economic growth and
protecting the environment.
2. Objectives
The Policy aims to achieve following objectives: –
A. To accelerate adoption of clean energy alternatives and decarbonize the energy
sector which includes both grid-based electricity consumption and captive
consumption of industrial consumers in the State
B. To harness the clean energy potential of the State and make best use of the
available resources by facilitating development of green energy projects in the State
C. To attract investment in the clean energy sector, create job opportunities and
develop the State economy
D. To facilitate R&D and promote new initiatives & emerging RE technologies in the
3. Legal Framework
The legal basis for this Policy inter alia includes the following:
1. The Electricity Act, 2003 (“ the Act”) & the Rules made thereunder.
Section 86(1)(e) of the Act mandates State Electricity Regulatory Commissions (SERCs)
to promote generation of electricity from renewable sources of energy.
2. Tariff Policy notified by Ministry of Power, Government of India.
4. Policy period
The Policy shall come into operation with effect from the date of its publication in the
Official Gazette of the State and shall remain in force till 31st March 2030 or until a new
policy is announced by the State Government.
This Policy will be evaluated on regular basis to assess its impact, and to ensure inclusion
of any new RE technology/guidelines of Government of India (GoI)/Government of Odisha
(GoO) that may evolve during the Policy period.
The Government of Odisha may amend/modify/ review this Policy as and when deemed
5. Scope of the Policy
A. All large hydro, small hydro, ground mounted solar, roof top solar, floating solar,
canal top solar, wind, biomass, energy storage (including pumped storage hydro,
battery energy storage system), waste-to-energy, green hydrogen/green ammonia
projects or any other renewable energy technology and new initiatives/ pilot projects
commissioned in the State of Odisha during the Policy period shall be guided by
this Policy.
B. Any individual or company or body corporate or association or society or body of
individuals, whether incorporated or not, shall be eligible for setting up Renewable
Energy (RE) projects, either for the purpose of captive use and/or for selling of
electricity to the distribution licensee or third party including under the Renewable
Energy Certificate (REC) mechanism subject to provisions of this Policy and in
accordance with the Electricity Act 2003, as amended from time to time and the
Rules made thereafter.
C. The benefits under this Policy shall not be applicable to projects sanctioned prior to
the date of notification of this Policy or which is commissioned post the policy
period. This Policy also does not cover the projects for which PPAs have already
been signed.Source Link: http://www.indiaenvironmentportal.org.in/files/file/odisha%20renewable%20energy%20policy%202022.pdf